Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the employee pay the principal and 8% interest on September 30, 2019. Assume the company makes adjusting entries only at year-end on December 31. a. Record the establishment of the note b. Record any necessary end-of-period adjusting entry to be made at the end of 2018 c. Record the receipt of interest and principal on September 30,2019
Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the employee pay the principal and 8% interest on September 30, 2019. Assume the company makes adjusting entries only at year-end on December 31. a. Record the establishment of the note b. Record any necessary end-of-period adjusting entry to be made at the end of 2018 c. Record the receipt of interest and principal on September 30,2019
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 5MCQ: Dallas Company loaned to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest...
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![Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note
the employee pay the principal and 8% interest on September 30, 2019. Assume the company
makes adjusting entries only at year-end on December 31.
a. Record the establishment of the note
b. Record any necessary end-of-period adjusting entry to be made at the end of 2018
c. Record the receipt of interest and principal on September 30,2019](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6a10494-f073-484b-85a1-57278f9a6565%2F0908c919-ed54-4f1c-b3cd-1546c49226be%2F5zglb2k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note
the employee pay the principal and 8% interest on September 30, 2019. Assume the company
makes adjusting entries only at year-end on December 31.
a. Record the establishment of the note
b. Record any necessary end-of-period adjusting entry to be made at the end of 2018
c. Record the receipt of interest and principal on September 30,2019
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